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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 21, 2007 <br />Action Agenda <br />Item No. ,~~ <br />SUBJECT: Tax Collector's Annual Settlement <br />DEPARTMENT: Revenue PUB<_IC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Resolution <br />Reports (3) <br />Orders to Collect <br />Insolvent Reports (3) (provided to Clerk) <br />INFORMATION CONTACT: <br />Jo Roberson, 245-2727, option 5 <br />PURPOSE: To receive the tax collector's annual settlement on current and delinquent taxes and <br />approve the accounting thereof. Upon acceptance of the reports, the Board will issue the <br />Orders to Collect for fiscal year 2007-2008. <br />BACKGROUND: The reports in the annual settlement provide in detail information on <br />collections for the County, all fire and special districts, and the Towns of Carrboro, Chapel Hill, <br />and Hillsborough during the fiscal year 2006-2007. <br />The overall tax collection percentage is 99.03%. The overall collection percentage has three <br />components: real property, personal property, and motor vehicles and is reflective of all <br />jurisdictions charged to the collector. The largest and most important component is real <br />property. The collection staff has concentrated on increasing real property tax collections and <br />continues to consistently collect over 99% on the real property levy for the last ten consecutive <br />years. <br />The tax collector is required by statute 105-373 to give an annual settlement to the governing <br />body. It is the intent of the Machinery Act to create a direct relationship of responsibility and <br />accountability between the tax collector and the governing body. The governing body charges <br />the tax collector and no one else with the personal responsibility for collecting taxes. The <br />annual statement of the tax collector is based upon this responsibility. <br />NCGS 105-373 requires the tax collector to furnish a sworn report to the governing body <br />showing a list of property owners whose taxes remain unpaid for the preceding fiscal year. <br />There are three reports: one for real property owners, one for personal property owners, and <br />one for motor vehicle owners. Upon receiving these lists, the governing body enters into the <br />minutes the names of those persons who owe personal property and motor vehicle taxes, <br />declares the taxes to be insolvent, and by resolution designates the list entered into the minutes <br />as the insolvent list to be credited to the tax collector on the settlement report. The decision of <br />